XPeng’s Humanoid Robot Bet Hit A $6.3B Valuation - So Why Is XPEV Stock Falling?

Xpeng’s second-quarter revenue increased 8% to RMB19.74 billion but missed Wall Street’s RMB20.50 billion estimate, according to Fiscal.ai.

• Its adjusted loss of RMB1.29 per share was also wider than the expected loss of RMB0.77 per share.
• The robotics division’s fundraising was led by IDG Capital, with participation from Gaorong Ventures, Tencent and Alibaba.
• The humanoid robot is expected to enter mass production by the end of 2026.

XPeng (XPEV) is getting a major vote of confidence for its humanoid robot ambitions, but investors are not giving the Chinese EV maker the same benefit of the doubt. The company’s robotics business raised more than $900 million at a post-money valuation above $6.3 billion, even as XPeng reported a Q2 revenue miss and wider adjusted losses that sent XPEV shares lower. 

XPEV shares were down 3.7% at the time of writing.

XPeng’s Humanoid Robot Bet Gets $900M Vote Of Confidence 

Xpeng’s robotics business has entered into share purchase agreements to raise more than $900 million at a post-money valuation above $6.3 billion. IDG Capital led the round, with participation from Gaorong Ventures and strategic backing from Chinese technology giants Tencent and Alibaba.

XPeng plans to use the fresh capital to develop the hardware and software behind its humanoid robots, train its Physical AI models, generate data and build mass-production facilities. The company will also use the funds to support commercial expansion worldwide.

IRON Humanoid Robot Targets Mass Production By Year-End 

Its next-generation humanoid robot, Iron, is expected to enter mass production by the end of 2026. Initial deployments are planned at XPeng stores and campuses, followed by deliveries in China and overseas markets in 2027.

XPeng will retain controlling ownership of the robotics business and continue including its results in the group’s financial statements, it added.

But XPeng’s Core EV Business Is Still Missing Expectations 

The financing comes as XPeng increases spending on vehicles and AI technology. Second-quarter research and development expenses rose 32% from a year earlier to RMB2.91 billion (around $428 million).

Q2 revenue increased 8% to RMB19.74 billion but missed Wall Street’s RMB20.50 billion estimate, according to Fiscal.ai. Its adjusted loss of RMB1.29 per share was also wider than the expected loss of RMB0.77 per share.

Q3 Guidance May Be The Bigger Problem 

XPeng expects third-quarter revenue of RMB21.7 billion to RMB23.4 billion, below estimates of RMB25.88 billion. Q3 vehicle deliveries are expected in the range of 115,000 to 121,000 units, compared to 116,007 units in Q3 last year. 

Retail Sees Buying Opportunity At Lower Levels

Meanwhile, retail sentiment for XPEV on Stocktwits remained ‘bullish’ over the past 24 hours. XPEV was also among the top trending tickers at the time of writing.

One user said the stock is a long-term buy, but they would wait for it to drop into the $6 - $8 range.

View this Stocktwits post

The stock has been under strong selling pressure so far this year, declining more than 40%.

Conversion - RMB1 = $0.15

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